Apple's AuthenTec buy already being investigated for class-action suit
Law firms Levi & Korsinsky and Rigrodsky & Long, P.A. are looking to wrangle shareholder class action lawsuits on allegations that AuthenTec's board of directors purposely undervalued the company in its $356 millon sale to Apple.
Documents released by the two law firms note an investigation is currently underway and ask for shareholders to sign up for representation if a class action suit is indeed initiated.
Source: Levi Korsinsky
An online announcement from Levi & Korsinsky notes of the buyout: "Under the terms of the transaction, AuthenTec shareholders will receive $8 per share of AuthenTec stock they own. The transaction has a total approximate value of $350 million."
According to the firm, the "investigation concerns whether the AuthenTec Board of Directors breached their fiduciary duties to AuthenTec stockholders by failing to adequately shop the Company before entering into this transaction and whether Apple is underpaying for AuthenTec shares, thus unlawfully harming AuthenTec stockholders."
Although the investigation is directed at AuthenTec, a suit could affect Apple's acquisition of the company. Neither company has released an official statement regarding the matter.
While Apple's plans for AuthenTec remain unknown, some industry insiders have speculated the company's fingerprint-sensing technology could be integrated into a future iPhone for e-wallet authentication.
45 Comments
Lawsuits are not really "investigations". I think describing them either as class-action legal trolling or shareholder revolts would be more accurate. :D
Lawsuits are not really "investigations". I think describing them either as class-action legal trolling or shareholder revolts would be more accurate. :D
Agree. To call this an "investigation" is quite silly.
These sorts of nuisance filings are par for the course in most acquisition announcements. Like the vast majority, it will go nowhere.
so they're fishing for a lead plaintiff as opposed to actually doing any investigation ...
if ANYBODY other than Apple bought them shareholders would be celebrating.....but NO..... Apple STOLE the company, right?????
just add it to the list of reasons why Apple is the most sued company in America.....
one of the unavoidable problems with having $117Bil cash on the balance sheet....
so they're fishing for a lead plaintiff as opposed to actually doing any investigation ...
Interesting that it's cheaper to file a lawsuit first instead of actually performing an "investigation". Ridiculous, actually. If there were any justice, Apple would countersue and reduce them to ashes.